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Revisiting the business cycle model with cubic nonlinear investment function

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  • Muñoz-Guillermo, María

Abstract

Puu [38] introduced a symmetric business cycle model with a cubic investment function depending on a parameter, nevertheless the fact that symmetry is not a needed condition for the investment function was highlighted in [40]. In this paper, the model for business cycles proposed by Puu is revisited using a topological entropy approach, in particular, we prove the existence of topological chaos for a wide range of parameter values. Moreover, a non-symmetric cubic investment map generalizing the model introduced by Puu is considered, giving answer to the posed question.

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  • Muñoz-Guillermo, María, 2021. "Revisiting the business cycle model with cubic nonlinear investment function," Chaos, Solitons & Fractals, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:chsofr:v:142:y:2021:i:c:s0960077920309024
    DOI: 10.1016/j.chaos.2020.110510
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    5. Laura Gardini & Tönu Puu & Iryna Sushko, 2006. "A Goodwin-Type Model with a Piecewise Linear Investment Function," Springer Books, in: Tönu Puu & Iryna Sushko (ed.), Business Cycle Dynamics, chapter 12, pages 317-333, Springer.
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